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LETTER OF THE FEDERAL TAX SERVICE OF THE RUSSIAN FEDERATION

of November 27, 2012 No. ED-4-3/19911 @

Concerning procedure for taxation on the income of physical persons of transactions of exchange

The Federal Tax Service directs for data and use in work the letter of the Ministry of Finance of the Russian Federation of 19.09.2012 No. 03-04-08/4-310 on the tax matter to the income of physical persons of transactions of exchange. Bring the specified letter to subordinate tax authorities.

Valid counselor of state of the Russian Federation 3 classes

D. V. Egorov

Appendix

LETTER OF THE MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION

of September 19, 2012 No. 03-04-08/4-310

The department of tax and customs and tariff policy considered the letter on taxation on the income of physical persons of transactions of exchange and according to Art. 34.2 of the Tax Code of the Russian Federation (further - the Code) the following explains.

According to item 1 of Art. 210 of the Code in case of determination of tax base all income of the taxpayer gained by it both in cash and in natural forms, or the right to the order which at it arose, and also the income in type of the material benefit determined according to Art. 212 of the Code is considered.

To the income, taxable, in particular, the income from realization of real and personal estate belongs.

According to item 1 of Art. 39 of the Code sales of goods, works or services transfer on paid basis (including exchange of goods, works or services) the property rights to goods, results of the performed works as one person for other person, paid rendering services by one person to other person is recognized, in particular. At the same time goods according to item 3 of Art. 38 of the Code any property realized or intended for realization is recognized.

Thus, transfer of one goods in exchange for another is sales of goods.

As when making exchange both agreement parties transfer one goods in exchange for another, each of the parties realizes the goods. Respectively, for the purposes of the taxation the exchange should be considered as two counter transactions on sales of goods within one transaction with payment in natural form.

Thus, when making exchange the tax base is determined by each agreement party of exchange.

Income gained by each agreement party of exchange is determined proceeding from the cost of the exchanged property. If in case of exchange of property of one of exchange agreement parties according to item 2 of Art. 568 of the Civil code of the Russian Federation payment of difference in the prices of the exchanged goods was received, the amount of the received payment in cash also joins in the income considered in case of determination of tax base.

In compliance of paragraph of the 2nd subitem 1 of item 1 of Art. 220 of the Code in case of realization of property the taxpayer has the right to reduce the amount of the chargeable incomes by the amount of the expenses which are actually made by it and documentary confirmed connected with receipt of this income, to receive in the established cases property tax deduction, or in the cases provided by item 17.1 of Art. 217 of the Code, such income is exempted from the taxation.

In case of reduction of the income by the amount of the made expenses as expenses when making exchange documentary confirmed expenses on acquisition of the exchanged property are considered.

Deputy director of Department of tax and customs and tariff policy

S. V. Razgulin

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